[HISTORY: Adopted by the City of Isanti 4-3-2012 by Ord. No.
530. Amendments noted where applicable.]
The purpose of this chapter of the City Code is to license secondhand
goods dealers and temporary secondhand goods dealers, including antique
dealers, auction house dealers, internet auction dealers, consignment
house dealers, precious metal dealers, and flea market dealers, in
order to prevent these businesses from being used as facilities for
the commission of crimes and to assure that such businesses comply
with basic consumer protection standards, thereby protecting the health,
safety, and welfare of the community. The City Council makes the following
findings regarding the need to regulate secondhand goods dealers operating
within the City:
A.
Use of the services provided by secondhand goods dealers, whether
temporary or otherwise, provides an opportunity for the commission
of crimes and their concealment because such businesses can receive
and transfer stolen property easily and quickly, thus hampering local
law enforcement efforts.
B.
Measures to prevent stolen property from being sold to secondhand
goods dealers are necessitated by the fact that no other level of
government regulates this industry or effectively and efficiently
identifies criminal activity related to these businesses.
C.
An automated system of tracking merchandise and secondhand transactions
will help City law enforcement officials better regulate current and
future secondhand goods dealers, will decrease and stabilize the costs
associated with the regulation of this industry, and will increase
the identification of criminal activities in the secondhand industry.
D.
Secondhand goods dealers who operate within the City on a temporary
basis present unique consumer protection issues, because such businesses
often have out-of-state addresses not easily traced by consumers.
As used in this chapter, the following terms shall have the
meanings indicated:
Any secondhand goods, the value of which, in whole or substantial
part, is derived from their age or their historical association and
exceeds the original value of the item when new.
Any dealer whose regular business includes selling or receiving
secondhand goods where at least 90% of the goods on hand at all times,
measured according to value, consists of antiques.
Any dealer whose regular business includes selling or receiving
secondhand goods, some or all of which are offered for sale for the
highest bid or offer tendered. If the sale is conducted by means of
an auction, the auctioneer must be properly licensed and bonded in
accordance with applicable laws.
Every transaction conducted by a licensee is required to be reported to the City of Isanti Police Department under § 258-11.
An agreement between a dealer and a seller that enables the
dealer to take temporary possession of secondhand property, owned
by the seller, for the purpose of offering it for sale to the public.
A dealer in secondhand goods acquired by a consignment dealer.
Any person whose regular business includes the purchase of
goods, wares, or merchandise for the purpose of selling them at wholesale
or retail to any qualified purchaser.
Any group of five or more unrelated persons or businesses
selling secondhand goods to the public from a single physical location.
The sale of merchandise on the world wide web, or internet,
by a person who is registered with and assigned a designated account
or user name by the internet website hosting the auction.
The City Clerk for the City of Isanti.
Any single physical article; however, with respect to a commonly
accepted grouping of articles that is purchased as a set and has greater
value as a set than the combined value of its components set if sold
individually, the term "item" shall refer to the set.
The compact and contiguous premises described in the approved
license issued by the City's issuing authority.
The person to whom a license is issued under this chapter,
including any agents or employees of the person.
Secondhand goods dealers whose business plan and records
clearly demonstrate on an annual and continuing basis to the satisfaction
of the issuing authority that the business does not conduct more than
200 reportable transactions per licensing year and who agree to frequent,
unannounced inspection and monitoring by the issuing authority and
Isanti Police Department.
Any loan on the security of pledged goods on condition that the pledged goods are left with the dealer and may be redeemed or repurchased by the person pledging the goods for a fixed price within a fixed period of time or any purchase of second hand goods by a pawnbroker licensed under Chapter 233 of the Isanti City Code of Ordinances.
One or more natural persons; a partnership, including a limited
partnership; a corporation, including a foreign, domestic or nonprofit
corporation; a trust; a political subdivision of the state; or any
other business organization.
Any gem that is valued for its character, rarity, beauty,
or quality, including diamonds, rubies, emeralds, sapphires, or pearls,
or any other precious gems or stones, whether as a separate item or
in combination as a piece of jewelry or other crafted item.
Any person engaging in the business of coin dealer or buying
secondhand items containing precious metal or gems, including but
not limited to jewelry, watches, eating utensils, candlesticks, and
religious and decorative objects. Businesses that sell or receive
such items secondhand, but which derive less than 30% of their total
annual income, as measured by gross annual sales, from the sale of
such items, are exempt. Dealers in these items shall include, without
limitation, antique dealers, consignment house dealers, and auction
house dealers.
Coin with numismatic value or intrinsic value greater than
its denominational value, precious gems, gold, silver, platinum, and
sterling silver, whether as separate items or in combination as a
piece of jewelry or other crafted item, except items plated with precious
metal or metals and the plating equals less than 1% of the item's
total weight.
Gold, silver, platinum, and sterling silver, whether as a
separate item or in combination as a piece of jewelry or other crafted
item, except items plated with precious metal or metals and the plating
equals less than 1% of the item's total weight.
To purchase, accept for sale on consignment, broker, or receive
in trade for an item of equal or lesser value.
The receipt by a licensee of secondhand goods within the limits of the City of Isanti, or the receipt of secondhand goods by a licensee outside the City limits when those goods are intended for sale, held for sale or offered for sale on the licensed premises, where the secondhand goods are of the type defined in § 258-11 of this Code for which the licensee must make daily reports to police as set forth therein.
Any tangible personal property, previously owned, used, rented
or leased by a person other than the dealer offering it for sale,
including, without limitation: electronic audio or video equipment;
musical instruments; sports equipment; photographic equipment; outboard
motors; inboard drives; nautical sonar or radar devices; electric,
pneumatic or hydraulic powered construction or mechanical equipment
and tools; computers or computer-related equipment; cellular telephones
or other communication devices; jewelry; coins; precious metals; artist-signed
or artist-contributed original works of art; and other secondhand
goods or merchandise.
Any person whose regular business includes the selling or receiving of secondhand goods, which sales or receipts total more than 30% of the gross sales of said business during any calendar year, including auction house dealers, internet auction dealers, consignment dealers, flea market dealers, and antique dealers, but not including transactions conducted by a pawnbroker licensed under Chapter 233 of the Isanti City Code of Ordinances or used car sales involving vehicles with titles requiring registration with the Minnesota Department of Public Safety under Minn. Stat. Ch. 168 or boats required to be registered with the Department of Natural Resources.
[Amended 7-20-2021 by Ord. No. 763]
Any person who engages in the business of secondhand goods
dealer and who occupies a place of business or a lot either as a guest,
tenant-at-will, or under a lease for a period shorter than six months,
unless that person has occupied the place of business for more than
six months immediately prior to the occupancy becoming a tenancy-at-will.
A serial number, identification number, model number, owner-applied
identifier or engraving, "Operation ID" number or symbol, or other
unique marking.
A.
No person shall exercise, carry on or engage in the business of a
secondhand goods dealer unless currently licensed or registered pursuant
to this chapter. Issuance of a license or registration pursuant to
this chapter shall not relieve the dealer from obtaining any other
licenses required to conduct other businesses at the same or any other
location. No occasional secondhand goods dealer may conduct more than
200 reportable transactions during any licensing year without upgrading
the license to a secondhand goods dealer's license and paying the
fee.
B.
Pawnbrokers licensed under Chapter 233 of the Isanti City Code of Ordinances do not have to obtain a separate secondhand goods dealer's license. However, secondhand goods transactions conducted by a licensed pawnbroker must be in conformity with all of the requirements set forth in this chapter as though the pawnbroker held a separate secondhand goods dealer's license. This includes, without limitation, the recordkeeping, reporting and operational requirements and restrictions set forth in this chapter. Violations of this chapter will result in possible suspension or revocation of the pawnbroker's license.
C.
The following persons shall not be subject to the licensing requirements
and regulations of this chapter:
(1)
Persons who are residents, tax-exempt, nonprofit or public charitable
organizations, tax-exempt political organizations or tax-exempt, nonprofit
civic organizations conducting the occasional sale of secondhand goods
at events commonly known as "garage sales," "yard sales," "moving
sales," "fund-raiser sales," or "estate sales" where all of the following
are present:
(a)
The sale is held on real property located within the City that
is occupied as a dwelling by one of the sellers or owned, rented or
leased by the charitable, political or civic organization;
(b)
The person conducting the sale owns the items offered for sale
and receives all the proceeds therefrom;
(c)
The sales event does not exceed a period of 72 hours, with no
more than four sales events being held within a twelve-month period;
(d)
The sales event does not include the sale of firearms.
(2)
Secondhand goods dealers who register with the issuing authority
and whose business plan and records clearly demonstrate on an annual
and continuing basis, to the satisfaction of the issuing authority,
that they have not paid an aggregate amount to an individual seller
for all of the items received from that seller at the same time or
within six months in one or multiple transactions of $200 or more
and that they conduct transactions exclusively involving the sale
or receipt of any combination of the following:
(a)
Nonantique secondhand books, magazines, postcards, stamps, or
philatelic material;
(b)
Secondhand furniture, excluding: antiques, audio, video or other
electronic devices, or architectural elements, lighting fixtures or
lamps where the dealer intends to offer the item for sale or broker
the item for $200 or more;
(c)
Secondhand cookware, glassware, or eating utensils not containing
precious metals;
(d)
Secondhand clothing and shoes, excluding leather or fur outerwear
and apparel generally associated with the playing of or as equipment
for a particular sport or recreational activity;
(e)
Secondhand infants', toddlers' or children's clothing, appliances,
furniture, or safety devices.
(3)
Secondhand goods dealers who register with the issuing authority
and whose business plan and records clearly demonstrate on an annual
and continuing basis, to the satisfaction of the issuing authority,
that they acquire their secondhand merchandise exclusively by:
(a)
Sales of property from a merchant, manufacturer, wholesaler,
corporate entity or government entity, having an established place
of business, or goods sold at open sale from bankrupt stock, provided
the secondhand goods dealer must maintain a record of all such transactions
which includes, at a minimum, a written declaration of ownership setting
forth:
[1]
The seller's full corporate name, corporate address, telephone
number, federal employee identification number (EIN) or federal tax
identification number, full name of the chief executive officer of
the corporation, and a description of the seller's business;
[2]
An accurate description of each item of property that must identify
the item in a manner that relates to the transaction record, including,
but not limited to, any trademark, identification number, serial number,
model number, brand name, or other identifying mark on the item;
[3]
A description of the nature of the transaction, such as trade,
consignment, or sale;
[4]
The purchase price, asking price if consigned, or value attributed
to the items if accepted in trade; and
[5]
A signed statement by the seller that the seller is the true
owner of the property, or proof of his/her authorization from the
true owner to dispose of the items, and that the property is free
from all other claims or liens.
(b)
Transactions between dealers if both dealers are licensed under
Minn. Stat. § 325F.733 or this chapter of the City Code
of Ordinances, or if the seller's business is located outside of the
state and the item is shipped from outside the state to a dealer licensed
under Minn. Stat. § 325F.733 or this chapter of the City
Code of Ordinances.
(c)
Secondhand goods that have been donated without compensation.
(4)
Transactions conducted by Sheriffs or other public officers who are
acting according to law in their official capacity.
(5)
Transactions regulated by Minn. Stat. Ch. 80A or the Federal Commodity
Futures Commission Act.
(6)
Secondhand goods dealers who are able to demonstrate to the issuing
authority, upon request, that they qualify as a recognized, tax-exempt,
nonprofit organization pursuant to Section 501(c) of the Internal
Revenue Code or tax-exempt political organization pursuant to Section
527 of the Internal Revenue Code and regulated pursuant to Minn. Stat.
§ 10A.14, who exclusively conduct transactions involving
the sale or receipt of secondhand goods that have been donated without
compensation.
A.
Secondhand goods dealer. An application for a license or registration
shall be made on a form supplied by the issuing authority and shall
contain the following information:
(1)
Individual applicants. If the applicant is a natural person:
(a)
The name, residential street address, and telephone number of
the applicant.
(b)
Whether the applicant has ever used or has been known by a name
other than the name set forth on the application and, if so, the name
or names used and information concerning dates and places associated
with each such name.
(c)
The name of the business if it is to be conducted under a designation
or name other than the name of the applicant and a copy of the certificate
of commercial assumed name as required by Minn. Stat. § 333.01.
(d)
The home and business street addresses of the applicant for
the preceding five years.
(e)
The type, name and location of every business or occupation
in which the applicant has been engaged during the preceding five
years and the names and addresses of the applicant's employers and
partners, if any, for the preceding five years.
(f)
Whether the applicant has ever been convicted of a felony, crime
or violation of any ordinance other than a traffic ordinance, including
cases where there has been a stay of adjudication or imposition of
sentence. As to each such conviction, the applicant shall furnish
the time and place where the offense constituting the conviction occurred
and describe the offense for which the applicant was convicted.
(g)
The place and date of birth and the state driver's license number
or state identification number for the applicant.
(2)
Partnership applicants. If the applicant is a partnership:
(a)
The names and addresses of all general and limited partners and all information concerning each general partner as required in Subsection A(1) of this section.
(b)
The names of the managing partners and the interest of each
partner in the secondhand goods or antique business.
(c)
A true copy of the partnership agreement and a copy of the certificate
of commercial assumed name as required by Minn. Stat. § 333.01.
(3)
Corporate applicants. If the applicant is a corporation or other
organization:
(4)
All applicants. For all applicants:
(a)
The location of the business premises.
(b)
The location at which the applicant's business records are maintained.
(c)
A legal description of the business premises to be licensed
and registered.
(d)
Whether all real estate and personal property taxes that are
due and payable for the premises to be licensed or registered have
been paid, and if not paid, the years and amounts that are unpaid.
(e)
If the applicant does not own the business premises, a true
and complete copy of the current, executed lease.
(f)
Whether the applicant holds a current pawnbroker or secondhand
goods dealer license from any government unit, identifying the location
of all other licensed premises and whether the applicant is licensed
under Minn. Stat. § 471.924 or 325F.731-744.
(g)
Whether the applicant or any individual, partner or corporate
officer having an ownership interest in the business has previously
had a pawnbroker or secondhand goods dealer license denied or revoked
by any governmental unit, identifying that governmental unit.
(h)
Whenever the application is for a premises either planned or
under construction or undergoing substantial alteration, the application
shall be accompanied by a set of preliminary plans showing the design
of the proposed premises to be licensed or registered. If the plans
or design are on file with the City of Isanti, no additional set of
plans need be submitted to the issuing authority.
(i)
The applicant's hours of operation, on-site management and parking
facilities.
(j)
An executed data privacy advisory and consent form authorizing
the release of criminal history information from each of individuals,
partners and corporate officers having an interest in the business.
(k)
Such other information as the City Council or issuing authority
may require.
(l)
Proof of workers' compensation insurance, as required by Minn.
Stat. § 176.182, and the applicant's social security number
or individual taxpayer identification number and Minnesota business
tax identification number, as required by Minn. Stat. § 270C.72.
[Amended 7-20-2021 by Ord. No. 763]
B.
Temporary secondhand goods dealer. An application for a temporary secondhand goods dealer license under this chapter shall be submitted to the issuing authority at least 21 working days before the purchasing is to commence with the City. One license shall be obtained by the entity organizing the event and whose name appears on the title to or lease agreement for the premises on which the event will occur, so long as each separate vendor is specifically identified as set forth in this chapter and meets the eligibility requirements set forth in §§ 258-8 through 258-12.
(1)
For individual applicants:
(a)
The current full name, residential street address, temporary
local street address, current permanent business address, and residential
and business telephone numbers of the applicant.
(b)
Any other names the applicant has ever used or been known by
and the dates and places associated with each such name.
(c)
A brief description of the proposed purchasing event, its location,
and the type of merchandise to be purchased.
(d)
The dates and hours of the day during which the purchasing event
will be conducted.
(e)
The full name of the business on who behalf the purchases are
made, if it is to be conducted under a designation, name or style
other than the name of the applicant, and a copy of the certificate
of assumed name required by Minn. Stat. § 333.01, together
with credentials establishing the applicant's relationship to the
firm or business.
(f)
Whether or not the applicant has been convicted of any crime
other than petty traffic violations, the nature, time and location
of the offense, and the punishment or penalty imposed.
(g)
The last cities or other localities, not exceeding five, where
the applicant conducted purchasing immediately preceding the date
of the application and where within those areas the activity took
place.
(h)
The date and place of birth and a state driver's license or
state identification card number of the applicant.
(i)
Whether or not the applicant has ever personally, or as a partner
or corporate officer of a corporation or other business association,
had a registration or license similar to this chapter's license denied,
suspended or revoked by any government body within five years before
the application date, identifying that government unit.
(j)
The type, name and location of every business or occupation
of the applicant within the preceding five years and the names and
addresses of the applicant's employers, partners or business associates
within the preceding five years.
(k)
Whether or not the applicant has ever personally, or as a partner
or corporate officer of a corporation or other business association,
been denied a professional license or membership in a professional
business association, had a professional license revoked or been expelled
from a professional business association.
(2)
For applicants that are partnerships, corporations or associations:
(a)
The name of the corporation or business form and, if incorporated, the state of incorporation, including the name of each partner or officer of the organization and all information concerning each partner or officer required in Subsection A of this section.
(b)
The business address of the applicant, including a temporary
local address, and the home address of each partner or officer.
(c)
A brief description of the proposed purchasing event, its location,
and the type of merchandise to be purchased.
(d)
The dates and hours of the day during which the purchasing event
will be conducted.
(e)
The last cities or other localities, not exceeding five, where
the applicant conducted purchasing immediately preceding the date.
(f)
A true copy of the partnership agreement and, if the partnership
is required to file a certificate as to a trade name pursuant to Minn.
Stat. § 333.01, a copy of that certificate.
(g)
The date of birth and a state driver's license or state identification
card number of the corporate officer, general partner, or person affiliated
with the association who is primarily responsible for the purchasing
event.
(3)
For all applicants:
(a)
Whether the applicant or the firm or business employing the
applicant has been the subject of an investigation by a consumer protection
agency, State Attorney General's office, Better Business Bureau, or
similar group or agency, and the dates and outcomes of such an investigation.
(b)
Proof of workers' compensation insurance, as required by Minn.
Stat. § 176.182, and the applicant's Minnesota business
tax identification number, as required by Minn. Stat. § 270.72.
(c)
An executed data privacy advisory and consent form authorizing
the release of criminal history information from each of the individuals,
partners and corporate officers having an interest in the business.
(d)
Website and electronic mail addresses for the business and each
of the individuals, partners and corporate officers having an interest
in the business.
A.
Application fee.
(1)
The license or registration application fee shall be as set forth in Chapter 160, Fees, of the Code of the City of Isanti. The fee paid shall be refunded in accordance with the process as outlined within the Isanti City Code of Ordinances, except that the fee shall be refunded on a monthly basis.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
(2)
The application fee shall be paid in full before the application
for a new license, registration or renewal shall be accepted. Upon
rejection of any application for a license or upon withdrawal of any
application before the City Council approval, the application fee
shall be refunded in full to the applicant except where rejection
is for a willful misstatement in the application.
(3)
When the license or registration is for premises where the building
is not ready for occupancy, the time fixed for computation of the
fee for the initial license or registration period shall be 90 days
after approval of the license by the City Council or approval of the
registration by the issuing authority or upon the date the building
is ready for occupancy, whichever occurs first.
(4)
When a new application is submitted as a result of incorporation
by any existing licensee or registrant and the ownership, control
and interest in the license or registration are unchanged, no additional
fee shall be required.
B.
Investigation fee. An applicant for any license under this chapter shall deposit with the issuing authority at the time an original application is submitted for the amount as set forth in Chapter 160, Fees, to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this chapter. If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual costs of investigation, not to exceed $1,500. At any time that an additional investigation is necessary because of a change in the persons in charge of the business or corporate structure, the licensee shall pay an additional nonrefundable investigation fee in an amount as established by the City Council.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
C.
Transaction fee. In addition to the annual application fee, a transaction
fee, based upon the actual number of billable transactions conducted
by the licensee, shall be billed monthly to the licensee and is due
and payable within 25 days after the billed date. The transaction
fee shall reflect the cost of processing reportable transactions and
other regulatory expenses related to processing reportable transaction
information, including the cost of participating in the automated
recordkeeping system. The amount of the transaction fee shall be dependent
on the accuracy of the report and the type of medium (modem or other
approved electronic method or manual) by which the daily reports are
submitted to the Isanti Police Department pursuant to this chapter.
D.
Late transaction fees. A licensee failing to make a transaction fee
payment within 25 days after the billed date shall be required to
pay a penalty of 5% of the amount remaining unpaid. If payment of
the amount due plus the 5% penalty is not paid within 30 days after
the due date, an additional 10% penalty shall be imposed upon the
amount due and the 5% penalty. If the delinquency continues beyond
60 days, a license revocation notice may be sent and a revocation
hearing may be commenced.[1]
E.
Erroneously reported transaction penalty. Daily reports required to be submitted to the Isanti Police Department pursuant to § 258-11 must accurately report the information required by § 258-10B. If a licensee submits a daily report by modem or other approved electronic method containing any omission or inaccuracy in the required information, then each transaction containing an omission or inaccuracy will be classified as erroneous. Licensees who submit five or more erroneous transactions within a billable month shall be charged at the rate of a manually reported transaction for each such erroneous transaction during that billable month.
All applications for a license or registration under this chapter
must be signed and sworn to under oath. If the application is that
of a natural person, it shall be signed and sworn to by such person;
if that of a corporation, by an officer thereof; if that of a partnership,
by one of the general partners; and if that of an unincorporated association,
by the manager or managing officer thereof. All submitted applications
shall be referred to the issuing authority for verification and investigation
of the facts set forth therein. The issuing authority shall make the
determination as to whether or not the applicant qualifies for a certificate
of registration in lieu of licensing. Where it is determined that
the applicant does not qualify for registration in lieu of licensing,
upon the applicant's payment of the difference between the registration
fee and appropriate license fee, as well as the investigation fee,
the application will be processed as a license application.
After the completion of the application verification and investigation by the issuing authority, the issuing authority shall accept or deny the license application in accordance with this chapter. If the application is denied, the issuing authority shall notify the applicant of the determination in writing. The notice shall be mailed by certified and regular mail to the applicant at the address provided on the application form, and it shall inform the applicant of the applicant's right, within 20 calendar days of receipt of the notice by the applicant, to request an appeal of the issuing authority's determination to the City Council. If an appeal to the City Council is timely received by the issuing authority, the hearing before the City Council shall take place within 20 calendar days of the receipt of the appeal by the issuing authority. Renewal applications shall be governed by § 258-13 of this chapter. If an application is granted for a location where a building is under construction or not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises.
A.
Individual ineligibility. No license or registration in lieu of licensing
under this chapter shall be issued to an applicant who is a natural
person if such applicant:
(1)
Is not 18 years of age or older on the date the application is submitted
to the issuing authority;
(2)
Has been convicted of any crime directly related to the occupation
licensed or registered as prescribed by Minn. Stat. § 364.03,
Subd. 2, and has not shown competent evidence of sufficient rehabilitation
and present fitness to perform the duties of a secondhand goods dealer
as prescribed in Minn. Stat. § 364.03, Subd. 3;
(3)
Has been the subject of an investigation by a consumer protection
agency, State Attorney General's office, Better Business Bureau, or
similar group or agency and such investigation has indicated a pattern
of disregard of consumer rights in the conduct of the business;
(4)
Is not of good moral character or repute;
(6)
Has knowingly falsified or misrepresented information on the application;
(7)
Is not the real party in interest in the business being licensed
or registered;
(8)
Has had an interest in a corporation, partnership, association, enterprise,
business or firm that had a pawnbroker, precious metal or secondhand
goods dealer's license denied or revoked as a result of a violation
of law within five years of the date the license or registration application
is submitted to the issuing authority; or
(9)
Owes taxes or assessments to the state, county, school district,
or City that are due or delinquent.
B.
Partnership ineligibility. No license or registration in lieu of licensing under this chapter shall be issued to an applicant that is a partnership if such applicant has any general partner or managing partner who cannot meet the eligibility requirements of § 258-8A or if the partnership:
(1)
Has had a pawnbroker or secondhand goods dealer's license denied
or revoked as a result of a violation of law within five years of
the date the license or registration application is submitted to the
issuing authority;
(2)
Owes taxes or assessments to the state, county, school district,
or City that are due and delinquent; or
(3)
Has been the subject of an investigation by a consumer protection
agency, State Attorney General's office, Better Business Bureau, or
similar group or agency and such investigation has indicated a pattern
of disregard of consumer rights in the conduct of the business.
C.
Corporate and association ineligibility. No license or registration in lieu of licensing under this chapter shall be issued to an applicant that is a corporation or other organization if such applicant has any manager, proprietor, or agent in charge of the business who cannot meet the eligibility requirements of § 258-8A or if the corporation:
(1)
Has had a pawnbroker or secondhand goods dealer's license denied
or revoked as a result of a violation of law within five years of
the date the license or registration application is submitted to the
issuing authority;
(2)
Owes taxes or assessments to the state, county, school district,
or City that are due and delinquent; or
(3)
Has been the subject of an investigation by a consumer protection
agency, State Attorney General's office, Better Business Bureau, or
similar group or agency and such investigation has indicated a pattern
of disregard of consumer rights in the conduct of business.
D.
Locations ineligible. The following locations shall be ineligible
for a license or registration under this chapter:
(1)
Claims due. No license or registration shall be granted or renewed
for operation on any property on which taxes, assessments, or other
financial claims of the state, county, school district, or City are
due, delinquent, or unpaid. In the event a suit has been commenced
under Minn. Stat. §§ 278.01 to 278.13, questioning
the amount or validity of taxes, the City Council may, upon application,
waive strict compliance with this provision; no waiver may be granted,
however, for taxes or any portion thereof which remain unpaid for
a period exceeding one year after becoming due.
(2)
Improper zoning. No license or registration shall be granted if the
property is not properly zoned for this retail business under Ordinance
No. 445, Zoning Ordinance, unless the business is a legal nonconforming
use.
A.
Each license or registration under this chapter shall be issued to
the named applicant only and shall not be transferable to any other
person. No licensee or registrant shall loan, sell, give, or assign
a license or registration to another person. A license or registration
issued under this chapter is for the person and premises named on
the approved application, only at the permanent place of business
designated on the application. However, upon written request, the
issuing authority may approve an off-site, locked and secured storage
facility. No transfer of a license or registration shall be permitted
from place-to-place or from person-to-person, except in the case in
which an existing licensee or registrant is merely changing a business
or corporate name or changing its corporate structure so long as there
is no change in the ownership or control of the business or function.
All licenses or certificates of registration issued under this chapter
must be posted in a conspicuous place on the premises for which they
are issued.
B.
A licensee or registrant under this chapter must immediately notify
the issuing authority of the following:
(1)
A change in the corporation or organization officers listed on the
application.
(2)
Any changes in the partnership agreement.
(3)
A change of the managing partner, store or general manager, proprietor,
or other person who is in charge of the licensed or registered premises.
(4)
Any change in the ownership of an establishment licensed or registered
under this chapter, including any acquisition of an interest in the
partnership, corporation, or other organization by any person not
identified in the application.
C.
When an establishment licensed or registered under this chapter is
sold or transferred, the licensee or registrant shall immediately
notify the issuing authority of the sale or transfer. If the establishment
that is sold or transferred is to continue in the business of secondhand
goods dealer, the new owner must immediately apply for an appropriate
license or registration under this chapter. In addition, in the case
of licensees, a management agreement, which covers the period between
the sale or transfer and the issuance of the new owner's license,
shall be executed between the existing licensee and the new owner
within 20 days following the sale or transfer. The management agreement
shall vest control of all of the secondhand goods dealer's business
in the existing licensee or a manager responsible to the existing
license.
D.
A management agreement shall be required of any licensed secondhand
goods dealer whose business is being managed or operated by a person
other than the licensee or an employee of the licensee. No person
other than the licensee or an employee of the licensee shall be permitted
to manage or operate an establishment licensed under this chapter
until the issuing authority has reviewed and approved the management
agreement and any amendments thereto.
A.
Exempt transactions. The following items, when received by a licensee,
are exempt from the recording and reporting requirements of the chapter,
regardless of the purchase price paid by the licensee, asking price
if consigned or brokered, or value attributed to them if accepted
in trade:
(1)
A sale of property from a merchant, manufacturer, wholesaler, corporate
entity or government entity having an established place of business
or goods sold at open sale from bankrupt stock, provided the licensee
must maintain a record of all such transactions which includes a written
declaration of ownership that includes, at a minimum, the following:
(a)
The seller's full corporate name, registered address, telephone
number and federal employee identification number (EIN) or tax identification
number, the full name of the chief executive officer, and a description
of the seller's business.
(b)
An accurate description of each item of property, that must
identify the item in a manner that relates to the transaction record,
including, but not limited to, any trademark, identification number,
serial number, model number, brand name or other identifying mark
on the item.
(c)
A description of the nature of the transaction, such as trade,
consignment, or sale.
(d)
The purchase price, asking price if consigned or value attributed
to the item if accepted in trade.
(e)
A signed statement by the seller attesting that the seller is
the true owner of the property, or proof of his/her authorization
from the true owner to dispose of the items, and that the property
is free from all other claims or liens.
(2)
Retail and wholesale sales of merchandise by the licensee originally
received through a reportable transaction and for which all applicable
hold periods have expired.
B.
Records.
(1)
At the time of receipt of an item of any secondhand goods within
the limits of the City of Isanti or the receipt of any secondhand
goods by a licensee outside the City limits when those goods are intended
for sale, held for sale or offered for sale on the licensed premises,
the licensee shall immediately record, using the English language,
in an indelible ink or other indelible medium, in a book or journal,
which has page numbers that are preprinted, or in a computerized record
approved by the issuing authority, the following information:
(a)
An accurate description of the item of property, including,
but not limited to, its type, composition, size, color, and any trademark,
identification number, serial number, model number, brand name or
other identifying mark on such item;
(b)
The nature of the transaction, such as trade, consignment, or
sale;
(c)
The purchase price, asking price if consigned, or value attributed
to the item if accepted in trade, for each item received;
(d)
The date and time the item of property was received by the licensee;
(e)
The full name, address, telephone number, driver's license or
state identification card number, and date of birth of the person
from whom the item of property was received or, in the case of internet
auctions, the user account name or screen name of the seller and the
auction's internet address; and
(f)
The full name of the employee conducting the transaction.
(2)
Each item received must be separately described and recorded notwithstanding
that the items may have been received from the same customer at the
same time. A licensee must, upon request, immediately provide to the
appropriate law enforcement agency, license section or their designees
all records required by this chapter. Data entries must be retained
for at least four years from the date of the transaction.
C.
Customer receipt. The licensee or registrant must provide a receipt
to every person from whom an item of property is received, with the
exception of items purchased via an internet auction, and shall maintain
a duplicate of that receipt for four years. The receipt shall include
sufficient information to enable the Police Department to identify
the transaction, and every item related to it, in the licensee's records.
A.
Effective no later than 60 days after the Isanti Police Department
provides licensees with the current version of the automated pawn
system interchange file specification, licensees must submit every
reportable transaction to the Isanti Police Department daily in the
following manner: Licensees must provide to the Isanti Police Department
all reportable transaction information by transferring it from their
computer to the automated pawn system via modem using the current
version of the automated pawn system interchange file specification.
All required records must be transmitted completely and accurately
after the close of business each day in accordance with standards
and procedures established by the issuing authority. Any transaction
that does not meet the automated pawn system interchange file specification
must be corrected and resubmitted the next business day. The licensee
must display a sign of sufficient size, in a conspicuous place in
the premises, which informs patrons that all transactions are reported
to the Isanti Police Department daily.
B.
Billable transaction fee. Licensees will be charged for each billable
transaction reported to the Isanti Police Department.
(1)
If a licensee is unable to successfully transfer the required reports
by modem, the licensee must provide the Isanti Police Department,
upon request, printed copies of all reportable transactions along
with the videotape(s) for that date, by 12:00 noon the next business
day.
(a)
If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must continue to provide the required reports as detailed in Subsection B(1) and must be charged a reporting failure penalty of $50 daily, until the error is corrected; or
(2)
Regardless of the cause or origin of the technical problems that
prevented the licensee from uploading its reportable transactions,
upon correction of the problem, the licensee shall upload every reportable
transaction from every business day the problem had existed.
A.
Automatic holding period. Any item purchased or accepted in trade
by a licensee must not be sold or otherwise transferred for 30 days
from the date of the transaction. Exceptions shall be given to media
items, to include VHS tapes, CDs, DVDs, Blue-Ray discs, HD-DVD, audio
cassettes, books, video games, and other items deemed similar. Such
media items must not be sold or otherwise transferred for 14 days
from the date of transaction. An individual may redeem an item 72
hours after the item was received on deposit, excluding Sundays and
legal holidays.
B.
Police orders to hold or confiscate.
(1)
Investigative hold. Whenever a law enforcement official from any
agency notifies a licensee not to sell an item, the item must not
be sold or removed from the premises. The investigative hold shall
be confirmed in writing by the originating agency within 72 hours
and will remain in effect for 15 days from the date of initial notification,
or until the investigative hold is canceled, or until an order to
hold or confiscate is issued, whichever occurs first.
(2)
Order to hold. Whenever the Chief of Police or the Chief's designee
orders a licensee not to sell an item, the item must not be sold or
removed from the premises until the Police Chief or Chief's designee
authorizes its release. The order to hold shall expire 90 days from
the date it is placed on the property unless the Chief of Police or
the Chief's designee determines the hold is still necessary and notifies
the licensee, in writing, that the order is being extended.
(3)
Order to confiscate. Whenever an item is identified as stolen property
or evidence of a crime, the Chief of Police or the Chief's designee
may either physically confiscate and remove it from the premises or
place an order to hold on the property as provided above and leave
it on the premises. When an item is confiscated, the Police Chief
or Chief's designee must provide, upon request, his/her badge number,
name, Police Department telephone number and the case number relating
to the confiscation. When an order to hold or confiscate is no longer
necessary, the Chief of Police or the Chief's designee shall so notify
the licensee.
C.
Suspicious property. A licensee or registrant must report to the
Isanti Police Department any article sold or received, or sought to
be sold or received, if the licensee or registrant has reason to believe
that the article was stolen or lost. No licensee or registrant shall
receive or accept any item of property which contains an altered,
obliterated, or obviously removed serial number or unique identifier.
D.
Police inspections. The licensee or registrant must allow the Chief
of Police or the Chief's designee to enter the premises where the
licensed or registered business is located or business records are
maintained, including off-site storage facilities, during normal business
hours, and/or beyond normal business hours where the Chief of Police
or the Chief's designee determines an emergency situation exists,
for the purpose of locating items suspected or alleged to have been
stolen or otherwise improperly disposed of and inspecting such premises
and the items, wares, merchandise and records therein to verify compliance
with this chapter or other applicable laws.
E.
Label required. The licensee must affix a label to every item for which a report to the Isanti Police Department is required under § 258-11 at the time it is received in inventory. Permanently recorded on this label must be the number or name that identifies the transaction in the licensee's records, the name of the item, and the date the item can be sold. Labels must not be reused.
F.
Prohibited transactions. With the exception of purchases made via
an internet auction, no licensee, clerk, agent or employee thereof
shall receive any secondhand goods within the limits of the City of
Isanti or outside of City limits when those goods may be intended
for sale, held for sale or offered for sale on the licensed premises
under the following circumstances:
(1)
By mail or third-party delivery (not including items purchased via
an internet auction), unless accompanied by a fully executed declaration
of ownership which includes:
(a)
For individual sellers: the seller's full name, address, telephone
number, and legible photocopy of the seller's currently valid driver's
license or state identification card;
(b)
For corporate sellers: the full corporate name of the seller,
corporate address, telephone and facsimile numbers, federal employer
identification number or federal tax identification number, the full
name of the chief executive officer of the corporation and a description
of the seller's business;
(c)
A description of how the seller acquired the property and the
approximate date it was acquired;
(d)
A description of the property being sold by trademark, identification
number, serial number, model number, brand name or other identifying
mark on the items;
(e)
A description of the nature of the intended sales transaction,
such as trade, consignment, or sale;
(f)
The purchase price, asking price if consigned, or value attributed
to the items if accepted in trade;
(g)
A signed statement by the seller attesting that he or she is
the true owner of the property or is legally authorized by the true
owner, who is identified by full name, address, telephone number,
and date of birth, to dispose of the items and the property is free
from all other claims and liens; and
(h)
A signed statement by the seller that he or she is over the
age of 18 years and otherwise competent to conduct the transaction.
(2)
Unless the seller signs a statement attesting to be the true owner
of the property or is legally authorized to dispose of the property
by the true owner, who is identified by full name, address, telephone
number and date of birth, and that the property is free of all claims
and liens.
(3)
From any person who fails to present identification in the form of
a current valid Minnesota driver's license, a current valid Minnesota
identification card, or a current valid photo driver's license or
photo identification card issued by another state or a province of
Canada.
(4)
From any person under the age of 18 years.
(5)
From any person who is obviously intoxicated, chemically impaired
or incompetent.
(6)
Whenever the item of property contains an altered or obliterated
serial number, "Operation Identification" number or is otherwise altered
so as to remove, alter or obliterate a unique identifier of the property.
G.
Hours of operation. No licensee or registrant shall receive secondhand
goods, including antiques, or keep the business open for business
transactions on any day of the week before 6:00 a.m. or after 10:00
p.m.
H.
Maintenance order. A licensee or registrant under this chapter shall
be responsible for the conduct of the business being operated in conformity
with all applicable laws and shall maintain conditions of order.
I.
Gambling. No licensee or registrant under this chapter may keep,
possess, or operate, or permit the keeping, possession, or operation,
on the licensed premises of dice, slot machines, roulette wheels,
punchboards, blackjack tables, or pinball machines which return coins
or slugs, chips, or tokens of any kind, which are redeemable in merchandise
or cash. No gambling equipment authorized under state law may be kept
or operated and no raffles may be conducted on the licensed premises
or in adjoining rooms.
J.
Display and storage of firearms. As a condition of the licensure,
the dealer shall not display, store, or keep on the licensed property
any firearms.
A.
Deadline for renewal application. All licenses or certificates of
registration issued under this chapter shall be effective for one
year from the date of approval. An application for the renewal of
an existing license or registration shall be made prior to the expiration
date of the license or registration and shall be made in such form
as the issuing authority requires. If, in the judgment of the City
Council, good and sufficient cause is shown by an applicant for the
applicant's failure to submit a renewal application before the expiration
of the existing license, the City Council may, if the other provisions
of this chapter are complied with, grant the renewal application.
B.
Consideration of renewal application. Within a reasonable period
after the completion of the renewal verification process by the issuing
authority, the issuing authority shall accept or deny the renewal
application in accordance with this chapter. If the renewal application
is denied, the issuing authority shall notify the applicant of the
determination in writing. The notice shall be mailed by certified
and regular mail to the applicant at the address provided in the application
and it shall inform the applicant of the applicant's right, within
20 days after receipt of the notice by the applicant, to request an
appeal of the issuing authority's determination to the City Council.
If an appeal to the City Council is timely received by the issuing
authority, the hearing before the City Council shall take place within
a reasonable period of receipt of the appeal by the issuing authority.
A.
Suspension or revocation. The City Council may suspend or revoke
a license or registration issued pursuant to this chapter for any
of the following reasons:
(1)
Fraud, misrepresentation, or false statement contained in an application
or renewal application.
(2)
Fraud, misrepresentation, or false statement made in the course of
carrying on the licensed or registered occupation or business.
(3)
Any violation of this chapter or state law.
(4)
A licensee's or registrant's criminal conviction that is directly
related to the occupation or business licensed or registered as defined
by Minn. Stat. § 364.03, Subd. 2, provided that the licensee
or registrant cannot show competent evidence of sufficient rehabilitation
and present fitness to perform the duties of the licensed or registered
occupation or business as defined by Minn. Stat. § 364.03,
Subd. 3.
(5)
Conducting the licensed or registered business or occupation in an
unlawful manner or in such a manner as to constitute a breach of the
peace or to constitute a menace to the health, safety, or general
welfare of the community.
B.
Notice and hearing. A revocation or suspension of the license or
registration by the City Council shall be preceded by written notice
to the licensee and a hearing. The notice shall give at least eight
days' notice as to the time and place of the hearing and shall state
the nature of the charges against the licensee or registrant. The
notice shall be mailed by certified and regular mail to the licensee
at the most-recent address listed on the license or registration application.
[Amended 7-20-2021 by Ord. No. 763]
Any license or registration under this chapter may be denied
for one or more of the following reasons:
A.
The proposed use does not comply with the Isanti Zoning Ordinance.
B.
The proposed use does not comply with any health, building, building
maintenance or other provision of the Isanti City Code of Ordinances
or state law.
C.
The applicant has failed to comply with one or more provisions of
this chapter.
D.
The applicant is not a citizen of the United States or a resident
alien, or upon whom it is impractical or impossible to conduct a background
or financial investigation due to the unavailability of information.
E.
Fraud, misrepresentation, or bribery in securing or renewing a license.
F.
Fraud, misrepresentation, or false statements made in the application
and investigation for, or in the course of, the applicant's business.
G.
Business practices, or conduct, deemed by the issuing authority to
be contrary to the best interests, or safety, of the public.
H.
Violation, within the preceding five years, of any law relating to
theft, damage or trespass to property, sale of a controlled substance,
or operation of a business.
I.
The owner of the premises where an exhibition is planned would not
qualify for a license under the terms of this chapter.
A violation of this chapter shall be a misdemeanor under Minnesota law. Civil penalties shall be subject to assessment pursuant to Chapter 1, Article I, of the Isanti City Code of Ordinances. However, nothing in this chapter shall be construed to limit the City's other available legal remedies for any violation of law, including, without limitation, licensing sanctions, criminal, civil, and injunctive actions. In addition, violation or failure to pay civil fines may result in future license or registration ineligibility.
If any section, subsection, sentence, clause or phrase of this
chapter is for any reason held to be invalid, such decision shall
not affect the validity of the remaining portions of this chapter.
The City Council hereby declares that it would have adopted this chapter
and each section, subsection, sentence, clause or phrase thereof irrespective
of the fact that any one or more sections, subsections, sentences,
clauses, or phrases be declared invalid.
